1e. Lease Commission Agreement, Old Public Works Bldg. MEMORANDUM le.
CITY OF TO: Todd Gerhardt, City Manager
F ROM: L aurie Hokkanen, Assistant City Manager O
C '
CHANHASSEN � y g
7700 Market Boulevard DATE: April 3, 2012 OkC4•
PO Box 147
Chanhassen, MN 55317
SUBJ: Old Public Works Building Lease Commission Agreement
Administration
Phone: 952.227.1100 PROPOSED MOTION
Fax: 952.227.1110
Building Inspections "The City Council approves the attached Addendum to Exclusive Listing
Phone: 952.227.1180 Agreement Dated July 30, 2009."
Fax: 952.227.1190
Approval requires a simple majority vote of the council.
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
BACKGROUND
Finance
Phone: 952.227.1140 On February 27, 2012, the City Council approved a lease with Road Runner
Fax: 952.227.1110 Diesel Services, Inc. for the old Public Works facility at 1591 Park Rd. At that
time, staff also included a summary of the commission schedule to be paid to
Park &Recreation Craig Peterson of Marathon Real Estate. The Addendum to the Listing
Phone: 952.227.1120
Fax: 952.227.1110 Agreement that spells out the terms of that commission structure is attached for
your approval.
Recreation Center
2310 Coulter Boulevard The lease that was effective on March 1, 2012 was for a three -year term
Phone: 952.227.1400
Fax: 952.227.1404 Therefore, commission to be paid to Marathon Real Estate under the agreement is
Planning & as follows:
Natural Resources o 2012: 7% of base rent, $8,267.28
Phone: 952.227.1130 o 2013: 6% of base rent, $5,047.92
Fax: 952.227.1110 o 2014: 5% of base rent, $4,440.30
Public Works The Commission Agreement also specifies term for a fourth and fifth year of the
7901 Park Place lease. Terms of an extension will be negotiated if the need arises.
Phone: 952.227.1300
Fax: 952.227.1310
RECCOMENDATION
Senior Center
Phone: 952.227.1125 Staff recommends approval of the Addendum to Exclusive Listing Agreement.
Fax: 952.227.1110
ATTACHMENT
Web Site
www.ci.chanhassen.mn.us 1. Addendum to Exclusive Listing Agreement
G:\Admin \LH \old PW Building, 1591 Park Rd \Road Runner Lease Commission Agreement Staff Report.doc
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Addendum to Exclusive Listing Agreement
Dated July 30, 2009
The listing agreement is hereby amended to include a commission structure for
Leasing the Facility to Road Runner Diesel, Inc.
• Year 1 - - -7% of net rental income
• Year 2 - - -6% of net rental income
• Year 3 - - -5% of net rental income
• Year 4 - - -4% of net rental income
• Year 5 - - -3% of net rental income
Year 1 commission is to be paid out upon execution of the lease and years 2 -5 will
be paid out at the end of the respective lease period.
In the event that the tenant chooses to purchase the building anytime within the
same five year period any lease commissions due will be prorated to date of
closing and 3% of the purchase will be paid out as the sale commission.
City of Chanhassen Marathon Real Estate
By: By:
Thomas A. Furlong, Mayor Craig Peterson, Principal
By:
Todd Gerhardt, City Manager
Date Date